Moving towards sustainable mining using renewable energy

Copper and lithium mines play a vital role in the global energy transition. Copper transports energy through cables, motors and electrical grids, while lithium stores it in batteries that power electric vehicles, computers and storage systems.  

Global demand is skyrocketing, and Chile is the world’s leading producer of copper and one of the largest producers of lithium. However, the extraction and processing of these elements still rely heavily on fossil fuels, resulting in a high carbon footprint. 

Why talk about renewable energy in the mining sector? 

The context of mining in Chile 

Chile is the world’s leading copper producer (24% of global production) [1] and holds more than 30% of the world’s lithium reserves [2], minerals that are essential to the global energy transition. Copper is used in electrical cables, transport networks and renewable technologies, while lithium is essential for electric vehicle batteries and solar and wind energy storage.  

The mining sector accounts for around 12% of Chile’s GDP and 60% of its total exports, making it a fundamental pillar of the national economy [3]. 

However, extracting and processing these minerals requires high amounts of heat, which is still mainly produced from fossil fuels. Mining in Chile consumes around 55 TWh of energy per year, 51% of which is electricity and 49% heat [4], with the latter largely covered by diesel and natural gas.  

As a result, the mining sector generates around 7% of the country’s greenhouse gas (GHG) emissions, with 7.9 MtCO₂e direct emissions in 2022, mainly related to the use of fuels in boilers, thermal processes and transport

Share of electricity and heat in total energy consumption, 2010–2024. Source: Cochilco

Barriers to decarbonation in the mining industry 

Behind the energy challenge lie significant economic and technical obstacles, which explain why decarbonising mines remains complex: 

• The need for significant CAPEX investments to improve energy efficiency by integrating heat recovery systems and renewable heat technologies. 

• The need to modernise thermal technologies and equipment: many sites use low-efficiency diesel or gas boilers without waste heat recovery systems. In addition, some do not have thermal demand control, which leads to oversizing and overconsumption. 

• Limited government support, mainly focused on electrification and power purchase agreements (PPAs), with few concrete measures to accelerate the decarbonation of heating. 

However, heat production from fossil fuels is very costly and highly exposed to the volatility of international diesel and natural gas prices. 

Renewable heat is a clean and reliable alternative to fossil fuels, capable of significantly reducing CO2 emissions and improving the sector’s competitiveness. 

Case of the Gabriela Mistral mine 

The Gabriela Mistral copper mine, located in the Antofagasta region of northern Chile, is an open-pit mine owned by Codelco, which specialises in the treatment of oxidised minerals by leaching.  

Operating 24/7 in one of the sunniest deserts in the world, the site has significant heating requirements to maintain the temperature of the solutions used in the leaching and electro-winning processes.  

In this context, Sunmark Chile*, now Newheat Latam, set up a solar thermal plant more than 10 years ago with an installed capacity of over 30 MWth, equipped with thermal storage of more than 4,000 m³.  

The plant was integrated as a source of additional heat for the electro-winning process. Today, it provides more than half of the thermal energy needed to maintain the large tanks containing the cathode plates at around 46°C. 

This solution has made it possible to: 

• Reduce fossil fuel consumption by more than 60%. 
• Avoid the emission of more than 15,000 tCO₂/year. 

• Reduce operating costs by more than 10%. 

This example shows what is achievable with an average solar radiation of ~2,800 kWh/m²/year in northern Chile, reproducibility is high in other leaching sites and low- and medium-temperature processes. 

* Sunmark Chile was founded by Hans Grydehoj and Ian Nelson, respectively the current managing director and technical director of Newheat Latam. 

Decarbonising mining with renewable ressources

The Chilean mining industry faces a major challenge: decarbonising its thermal processes in order to meet its national and international commitments, remain competitive and respond to growing demand for minerals with a low environmental footprint. 

The large-scale integration of renewable heat represents one of the most significant and profitable opportunities to accelerate the energy transition of mines. With a favourable public framework, appropriate incentives and the commitment of players such as Newheat Latam, the sector can significantly reduce its carbon footprint, control its operating costs and establish itself as a world leader in “green minerals”. 

At Newheat and Newheat Latam, we support the mining sector in Chile with concrete, scalable and competitive solutions, promoting sustainable mining that contributes to the economic development of the industry, the country and the protection of the planet.